NO SUCH THING AS "DOLLAR SHORTAGE"
TWITTER THREAD HERE · DOLLAR SHORTAGE thread 1/ Watch the video enclosed in the first tweet explaining shadow banking by Lynn Stout. It was Chris Whalen which promoted that video trying to explain to twitter followers what shadow banking was. 2/ So, to keep it simple, mega financial players in shadow banking creates BETS in trillion of dollars. Let me repeat this again: INSOLVENT MEGA PLAYERS ENGAGE IN BETTING IN SHADOW BANKING. 3/ Lynn Stout explains how laws were changed to make that possible, with London being in the epicenter of it. Insolvent mega financial players create bets in shadow banking in trillions of dollars NOMINAL at extreme leverage. 4/ All corporations BET in shadow banking with mega financial players as well, as we need two sides to bet, normal. Bets are usually called Interest Rate Swaps or other derivations of interest rate derivatives, but they are all ALL dependent on interest rates. 5/ As we know in bets, one side wins, one side loses. If the losing side is...